Standard deviation on the market

Assignment Help Financial Management
Reference no: EM131317966

What is required return on a portfolio with a standard deviation of 22%, if the risk-free rate is 2%, the expected return on the market is 11%, and the standard deviation on the market is 15%?

  • 13.2%
  • 15.2%
  • 18.13%
  • 21.07%

Reference no: EM131317966

Questions Cloud

What percentage of equity will the new shareholders demand : An all-equity firm wants to raise $50M to fund a new investment project. If things go well following the new investment, the present value of the cash flows of the firm will be $500M (state G). Suppose that the manager announces that the firm will fu..
Define types of bullying to which amanda todd was subjected : Describe at least two types of bullying to which Amanda Todd was subjected.Identify at least three consequences that Amanda Todd experienced as a result of being bullied, and discuss her attempts to deal with them.Recommend two strategies that you..
Net present value of the aftertax benefits : Assuming a discount rate of 8%, calcualte the net present value of the aftertax benefits. Sandras life expectancy is 20 more years, and she could receive an annuity of $35,000 a year for the next 20 years. Because her annual income would be relat..
How much would you be willing to pay for a ticket to draw : If you are offered $20 to draw a red ball from a bag that contains six green balls, two blue balls, and two red balls, how much would you be willing to pay for a ticket to draw?
Standard deviation on the market : What is required return on a portfolio with a standard deviation of 22%, if the risk-free rate is 2%, the expected return on the market is 11%, and the standard deviation on the market is 15%?
Prepare a single step pro forma income statement : Prepare a single-step pro forma income statement for Calcor Company for the year ended November 30, 2012, assuming that Calcor's planned actions would be carried out and that the 5% increase in unit sales would be realized.
Write a critical swot analysis on lenovos outlook : Critically analyse the current state of international corporate PC market to get a better sense for the environment to address the problem of Lenovo. Use the concept of Porter's Six Forces.
Net income-comprehensive income and continuing income : Distinguish between net income, comprehensive income, and continuing income. Cite and discuss examples of income statement items that create differences between these three income measures. 250 words
The beta coefficient for stock : The beta coefficient for Stock C is bc = 0.4, while that for Stock D is bD = -0.5. (Stock D's beta is negative, indicating that its rate of return rises whenever returns on most other stocks fall. There are very few negative beta stocks, although gol..

Reviews

Write a Review

Financial Management Questions & Answers

  Contemplating making investment

The Knight and Day Café is contemplating making a $125,000 investment that has a 45% chance of producing a 8% return, a 25% chance of producing an 11% return, a 15% chance of producing a 15% return, a 10% chance of producing a 5% return, and a 5 % ch..

  Financial statement analysis the specific purposes of this

financial statement analysis the specific purposes of this project are1. apply to real company the basic knowledge and

  What is the most vivid instance you can recall

What is the most vivid instance you can recall, from ?rsthand experience, when a company was hurt by its bungling of the mode issue? How would you account for what the company did? What is the single thing you could do that would have the best chance..

  Breakeven between purchasing and manufacturing the mechanism

Toys R Us can purchase mechanisms to be used in making certain toys for $60 each. They can manufacture their own mechanisms for $7000 per year fixed cost plus $35 for each mechanism, provided they purchase a machine for $100000 that will have a 10 ye..

  What is projects net present value if the tax rate

A project has an initial requirement of $310,000 for fixed assets and $62,000 for net working capital. The fixed assets will be depreciated using MACRS 3-Year Class. The project has an estimated salvage value of $160,000 and will be sold after 3 year..

  Money and capital markets

What advantages does the issuance of debt have over other sources of funds that a business firm might pursue? How about disadvantages? What services do investment bankers provide to what groups of clients? What risks do investment bankers face and wh..

  What factors affect future movements in value of the euro

Factors affecting exchange rates. What factors affect the future movements in the value of the euro against the dollar?

  Filers capital structure weights on market value basis

Filer Manufacturing has 9 million shares of common stock outstanding. The current share price is $75, and the book value per share is $6. Filer manufacturing also has two bond issues outstanding. What are Filer's capital structure weights on a book v..

  Earnings per share on the common stock

Mimi's Muffins. has earnings after taxes of $128,750. Interest expense for the year was $20,000; preferred dividends paid were $18,750; and common dividends paid were $30,000. Taxes were $15,000. The firm has 100,000 shares of common stock outstandin..

  Case of a routine medical checkup for a pregnant woman.

Consider a case of a routine medical checkup for a pregnant woman. Suppose that a new ultrasound method is introduced. A checkup using the new method costs 10% more than a checkup using the old method.

  Long-term debt-preferred stock and common equity

In this chapter we described how to estimate a company’s WACC, which is the weighted average of its costs of debt, preferred stock, and common equity. As a first step we need to estimate what percentage of MMM’s capital comes from long-term debt, pre..

  Compute and characterize lockes gain on sale

Locke sold machinery used in his business for $50,000. He purchased the equipment three years ago for $55,000 and deducted $22,800 MACRS depreciation through date of sale. Compute and characterize Locke's gain on sale.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd